Tesla Claims Its Battery Cost Goes Below $124/kWh At Gigafactory

Posted: Feb 22 2017, 2:44am CST | by , in News | Cars & Vehicles

 

Tesla Claims its Battery Cost Goes Below $124/kWh at Gigafactory
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Tesla claims 35% cost reduction in battery at Gigafactory, reaching a huge reduction, below $125/kWh

New research reveals that the average cost of electric vehicles battery reduced to $227/KWh in 6 years that is 80 percent reduction. Though, the progress is good but long range electric cars are yet expensive.

Cost of battery cell and pack should be below average to reach the price for mass market, and here Tesla is doing it with Gigafactory. Tesla wanted to drop the battery cost to 30 % before Gigafactory. Now Tesla says that it has reduced the cost to 35%. The company announced the reduction in its promotional video.

Tesla never disclosed the battery costs before until Gigafactory started making battery cell. Because of a big factory plan, Tesla decided for 30% cost reduction, but CEO Elon Musk always said that the company can reduce the cost more than 30 percent.

Now Tesla claims a reduction of 35 percent in the battery cost, and it seems true because the promotional video has shown battery displayed in stores. Both Tesla and Panasonic have started making 2170 battery cell at Gigafactory.

Though, Tesla is not telling the exact figure of reduction, but still it’s true that the 30% reduction becomes from $190/kWh to $124/kWh, according to Electrek.

Looking at that, the Model 3 will have a battery cost less than $6.875 for 55kWh battery pack. Battery is though an expensive part of a vehicle, but now for a vehicle of $3500 we will have affordable battery.

Now battery powered vehicles will compete with the gas driven vehicles.  In gas powered vehicles, the cost reduces to $100/kWh. Musk said in the past that we need to reach the milestone by 2020, and the development of Gigafactory seems to show that Tesla will reach its production goal for Model 3.

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